BEIJING—Demand for rubber products in China is projected to grow 8.8 percent a year to reach $120.3 billion in 2017, according to a new study, Rubber Products in China, from Cleveland-based Freedonia Group.
Manufacturing production, particularly in the industrial machinery and automotive industries, will drive the gains, according to the report from Freedonia’s Beijing office.
Strong demand for both consumer automotives and other vehicles, such as medium and heavy trucks and buses, are expected to contribute to growth in demand for tires and other rubber products.
Tires will continue to be the largest rubber product segment through 2017 and beyond, boosted by expansion of motor vehicles and motor vehicle parks.
Freedonia said a continuing shift in the tire-product mix toward higher-value products such as radial tires, run-flat tires, air-free tires, ultra-high performance tires and tires of larger sizes will help drive market gains in value terms.
“Growing demand for higher-priced tires as income levels continue to grow will further boost revenues,” analyst Linda Li said in a news release about the report.
Freedonia forecasts demand for industrial rubber products to grow by 9.4 percent a year to 2017. The market, it said. The production of construction machinery, mining and metallurgy equipment, chemical and petroleum machinery, material handling equipment, and metalworking equipment will drive the market and continue to grow.
Industrial machinery and motor vehicle markets have the largest impact on rubber product sales, accounting for 72 percent of total demand in 2012. Gains in these two markets are forecast to outpace the market average through 2017.
Rubber product demand in the aerospace and other transportation equipment market is projected to grow at the fastest rate. This, said Freedonia, will be due to strong increases in the production of commercial aircraft and helicopters, as well as aircraft parts.
Other rubber products are expected to grow 5.1 percent through 2017.